Speaker: Andre Navarri
Title: Chairman, Valeo SA
E-business isn't about improving costs - it's about speeding up communications, Valeo Chairman Andre Navarri says.
For Valeo, the speed of deployment of new technologies is more important than having a perfect system, he told conference-goers.
'We don't want a very sophisticated system,' he said. 'We want only projects that bring improvements in six months.'
For example, he said, Valeo wants a very fast rollout of its e&SI (e-procurement at supplier integration) system that was launched in April. The system covers four areas: web catalog, e-negotiations, supplier relationship management and purchasing knowledge management.
The web catalog feature, which allows all Valeo employees to use the same catalogs to order supplies or services at pre-negotiated prices, is up and running with 2,000 end-users at 30 sites, Navarri said.
Valeo's target is to complete the rollout by July 2001 with 8,000 end-users, 80 catalogs and 120 sites in the USA, Mexico, France, Germany and Spain.
The other three areas together will create an electronic 'collective memory' to help suppliers make more informed purchasing decisions, he said without elaboration.
On other topics, Navarri said he expects the aftermarket to become a major source of e-business revenue.
'There are a lot of players, a lot of them small, needing a lot of up-to-date information from suppliers,' he said.
Valeo is a founding member of TecCom, the European aftermarket website launched by 20 parts suppliers at the Frankfurt auto show in October 1999.
In addition Valeo is developing its own systems, such as Clim Service, which provides 300 air conditioning system repairers in Europe with instant diagnoses on line.
Navarri also dismissed concerns that the move to Internet business dealings will result in additional pricing pressures on suppliers.
He said: 'There is no change in the balance of power between automakers and suppliers.'